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NSCA Electronic Systems Outlook Predicts Decline In Construction Growth

NSCA

The National Systems Contractors Association (NSCA) has published its Electronic Systems Outlook Winter 2020 report. This research includes information based upon actual data from January through November 2020, as well as forecasted information for 2021 and beyond. NSCA partners with FMI to provide this biannual report, which offers the newest, most relevant indicators of business opportunities for AV integrators. By tracking new construction starts and renovations across multiple markets—including healthcare, lodging, retail, education, houses of worship and more—NSCA pinpoints which verticals should do well in 2021 and years to come.

According to the latest data, US construction spending is forecast to end 2020 up 1 percent compared to a 2 percent increase in 2019. For 2021, FMI forecasts a 6-percent decline in engineering and construction spending compared to 2020.

The Electronic Systems Outlook Winter 2020 edition also provides an updated view of construction data by market for electronic systems/technology, including AV, data/IT, building automation/control, life safety/fire/security and digital signage/lighting.

“Twenty-twenty was certainly a challenging year for NSCA members. Projects were put on hold and some were canceled altogether,” NSCA Executive Director Chuck Wilson said. “On the flipside, we saw rapid technology deployment for mission-critical applications placing huge demands on available labor and supply chain resources. At this time last year, our No. 1 issue was a lack of qualified workers. Today, our No. 1 issue is revenue predictability and matching revenue to staffing.”

During the virtual Business & Leadership Conference on February 24-25, in what has become an annual tradition, Chris Kuehl—chief economist for several organizations, and managing partner for a firm that provides forecasts and strategic guidance—will use the Electronic Systems Outlook Winter 2020 report to analyze long-term trends, current conditions, and the economic outlook for 2021 and beyond. Additionally, NSCA will host a free, one-hour webinar on February 16 to help integrators learn more about this data and how to apply it to their own businesses.

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